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Earnings limit, pension points and taxation: What will change soon

2022-07-06T08:18:09.549Z


Changes in pensions: You have to adjust to this in retirement Created: 07/06/2022, 10:14 am By: Sophia Lother Many pensioners are affected by the coming changes. (symbol photo) © Westend61/Imago Earnings limit, pension points and taxation: Concrete changes are coming soon that pensioners will have to adapt to. Frankfurt – The time will soon come: When it comes to pensions, there will be some


Changes in pensions: You have to adjust to this in retirement

Created: 07/06/2022, 10:14 am

By: Sophia Lother

Many pensioners are affected by the coming changes.

(symbol photo) © Westend61/Imago

Earnings limit, pension points and taxation: Concrete changes are coming soon that pensioners will have to adapt to.

Frankfurt – The time will soon come: When it comes to pensions, there will be some changes again for senior citizens.

While, among other things, the pension increase is coming in July 2022, this will also affect pension points.

In addition, changes are planned for old-age provision in terms of additional income limits and taxation.

Everything important here in detail.

The pension increase of 5.35 percent in western Germany and 6.12 percent in eastern Germany from July also affects the pension points.

Because: The pension value, which corresponds to the equivalent of one payment point in the pension formula, increases.

In order to determine your own monthly pension amount, earnings points, access factor, current pension value and pension type factor are multiplied together.

The increase in pension value at a glance:

Annuity West

pension value East

Before July 2022

34.19 euros

33.47 euros

From July 2022

36.02 euros

35.52 euros

Disability pension: increase is imminent - what you have to consider

All those affected who are too ill to work more than six hours a day are already partially entitled to the disability pension.

The basic requirement is that the standard retirement age is not exceeded.

Certain periods of insurance are also a requirement.

Five years of contributions in the statutory pension insurance are considered a minimum.

Other requirements include, among other things, how much work can be done each day.

There is also an increase in the disability pension.

However, according to Social Affairs Minister Hubertus Heil (SPD), this is only planned from July 2024.

Surcharges of up to 7.5 percent are planned.

Around three million people should then receive more money in the long term.

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Pension 2022: What will soon change for pensioners

In 2022, pensioners who retire after at least 35 years of work but before the standard retirement age will still be lucky when it comes to additional income limits.

As in 2021, this was significantly increased.

The additional income limit is still 46,060 euros.

Previously, this limit for early retirees was only 6,300 euros.

But what do senior citizens have to prepare for in 2023?

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The coalition agreement between the SPD, the Greens and the FDP states that they want to “extend the regulation on additional earnings in the event of early retirement”.

The coalition program does not say whether this will already be the case next year.

At the request of

Focus Online

, however, the Federal Ministry of Labor stated that the tenure would be

"

implemented this year".

Taxation of pensions: what should change

The coalition agreement also contains changes with regard to the taxation of pensions.

Accordingly, the frequently criticized double taxation of pensions should be avoided.

Federal Finance Minister Christian Lindner (FDP) has announced that contributions to pension insurance will be fully tax-deductible from 2023 - and not until 2025 as originally planned.

There is also good news in the coalition agreement on the taxation of pensions.

From 2023, the taxable portion of the pension is only to increase by half a percentage point.

Full taxation of pensions will not be achieved until 2060.

For retirement in 2022, the share in taxation of the pension is currently 82 percent.

(slo)

Source: merkur

All news articles on 2022-07-06

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